Refer to the Accompanying Data (All ?Gures in Billions of

question 213

Multiple Choice

$$\begin{array} { | l | r | } \hline \text { Gross Investment } & \$ 18 \\\hline \text { National Income } & 100 \\\hline \text { Net Exports } & 2 \\\hline \text { Personal Income } & 85 \\\hline \text { Personal Consumption Expenditures } & 70 \\\hline \text { Saving } & 5 \\\hline \text { Government Purchases } & 20 \\\hline \text { Net Domestic Product } & 105 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$$ Refer to the accompanying data (all ?gures in billions of dollars) . The gross domestic product for this economy is

• A) $100.
• B) $95.
• C) $110.
• D) $107.

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Definitions:

Differential Cost

The variance in overall expenses incurred when choosing one option instead of another.

Relevant Costs

Costs that will be affected by a decision and hence should be considered in the decision-making process.

Milling Machine Constraint

A limitation or bottleneck in the production process caused by the capacity or capability of the milling machine.

Productive Capacity

The maximum output level that a company can sustain to produce in a given period under normal circumstances.